Whether you’re a Spartan or a Wolverine, or live in a landlocked city or along Michigan’s 3,000+ miles of coastline, having the right auto insurance coverage is important all across the Great Lakes State. It can ensure you’re following your state’s financial responsibility laws and help protect you from whatever you encounter on the road.

Direct Auto Insurance is proud to offer cheap car insurance in Michigan, and in this guide, we’re teaching you which coverages are mandatory, which ones are optional, and how Direct Auto can help you find cheap Michigan car insurance. Get a free quote to see how much money you can save with Direct.

Michigan Car Insurance Laws

Do you have to have car insurance in Michigan?

Michigan law requires all drivers to maintain continuous liability insurance for any vehicle they have registered in the state. Michigan auto insurance policies must at least meet the minimum liability coverage limits, typically expressed as three numbers representing thousands of dollars. For example, the liability limits in Michigan are 50/100/10, as shown below under Michigan Minimum Car Insurance Requirements.

In addition to liability coverage, Michigan drivers are also required to carry property protection insurance (PPI). They’re also required to carry personal injury protection (PIP) unless they’re exempt due to qualifying health coverage.

What is a no-fault state?

When people say, “Michigan is a no-fault state,” what do they mean? Well, in a no-fault state, each person injured in a car accident files a claim with their own insurance company and relies on their own coverage to pay for their medical expenses. If an injured party does not have their own auto insurance, they would file a claim under the policy insuring the vehicle they were occupying at the time of the accident.

In an at-fault state, however, the at-fault driver must have insurance to cover the other person's medical expenses, not their own. In this scenario, the at-fault driver's insurance would help cover the accident victim's expenses.

No-fault coverage only applies to injuries. In both no-fault states and at-fault states, drivers file property damage claims with the at-fault party’s insurer. However, in Michigan, mandatory property damage liability coverage only applies to out-of-state accidents, and property protection insurance only applies to fixed objects, not moving vehicles, according to Michigan.gov. So, to ensure your vehicle is protected from accidents regardless of fault in Michigan, you must purchase collision coverage.

Michigan Minimum Car Insurance Requirements

Wondering what your insurance policy needs to meet Michigan’s insurance requirements? Here’s a quick breakdown by coverage type.

Coverages	Is It Required by Law?
Bodily Injury Liability Coverage provides financial protection if you cause an accident that injures another person. It helps pay for their medical expenses and your legal services (if necessary). In Michigan, bodily injury liability coverage is useful when you are sued or cause an accident out of state.	Yes. $50,000 bodily injury per person/$100,000 bodily injury per accident.
Property Damage Liability Coverage helps pay to repair or replace other people’s property that is damaged in an accident you cause in another state. It typically involves damage to another vehicle, but it could help pay to repair a house, fence, mailbox, and more.	Yes. $10,000 property damage per accident.
Property Protection Insurance (PPI) helps pay to repair or replace another person’s property that you damage with your car. However, this type of coverage only applies to fixed objects, like buildings, signs, mailboxes, or properly parked vehicles. It doesn’t cover any damages to another moving vehicle.	Yes. $1,000,000 property protection insurance.
Uninsured/Underinsured Motorist Coverage (UM/UIM) helps pay for your medical bills and related expenses if the other driver has no coverage (UM), insufficient coverage (UIM), or can’t be identified due to hit and run. In some states, UM/UIM can also help pay for property damage.	Not required.
Personal Injury Protection helps pay for your medical and related expenses stemming from an accident, regardless of fault.	Yes. Unless you have qualifying health coverage, you will be required to choose an appropriate PIP AE Medical Option to meet your circumstances.
Collision Coverage helps pay to repair or replace your vehicle if you collide with another car, tree, guardrail, or another object, regardless of fault.	Not required.¹
Comprehensive Coverage helps pay to repair or replace your vehicle if it’s damaged by something other than a collision, like fire, floodwaters, falling branches, vandalism, or contact with an animal.	Not required.¹

IMPORTANT NOTE: While purchasing liability coverage, PPI, and PIP ensures you follow Michigan’s insurance laws, it doesn’t necessarily protect you and your vehicle in every circumstance. You would need to add additional coverage, like UM/UIM, comprehensive, and collision, to protect yourself and your vehicle from damages.

¹Your lender may require these coverages if you lease or finance your vehicle.

Are there additional coverage options?

For added peace of mind, Direct Auto offers add-on services and other insurance products for Michigan drivers:

Michigan Proof of Financial Responsibility and Penalties

What if I don't meet Michigan’s minimum car insurance requirements?

Thinking about taking a chance and driving uninsured? Think again. The consequences are severe for Michigan drivers who get caught driving without insurance, according to the Consumer Federation of America.

The penalties for a first offense of driving without appropriate auto coverage are up to a $500 fine, driver’s license suspension, and potential jail time. In addition to these penalties, you might also be required to fulfill SR-22 requirements if your license is suspended and you’re applying for reinstatement.

If you had coverage but couldn’t provide proof at a traffic stop (like if you forgot your insurance card at home), you might still be subject to a service fee. Therefore, it’s important for vehicle owners to maintain continuous coverage and always carry proof of coverage.

Penalties for Driving with a Suspended License in Michigan

It’s against the law to operate a vehicle without a valid driver’s license in Michigan. The exact penalty for driving while suspended, revoked, or unlicensed in Michigan depends on a few factors, although it generally involves fines, jail time, or both. It is charged as a misdemeanor, and the penalties get more severe for subsequent violations. So, if you do find yourself in a position where your license is suspended, make sure to follow the steps to get it reinstated, and never drive without a valid license.

SR-22 Insurance in Michigan

In many states, high-risk drivers are also required to keep an SR22 (also known as a certificate of financial responsibility) on file with the state verifying they have purchased auto insurance coverage that satisfies the state’s minimum coverage requirements. Drivers might be required to fulfill SR-22 requirements if:

They have been caught not maintaining proper liability coverage.
They were convicted of a DUI/DWI.
They have committed other serious driving violations.

If you need an SR22 filed to demonstrate financial responsibility compliance in Michigan or have questions about the penalties for non-compliance, we’d be happy to help. Direct Auto specializes in helping drivers find affordable car insurance coverage, regardless of their driving or insurance history. Give us a call today for a free quote.

High-Risk Auto Insurance in Michigan

Many individuals do not have a perfect driving record, and after a certain number of violations or a serious enough violation, drivers can be considered a major risk to insure. While some companies try to steer clear of these individuals, other insurance companies offer non-standard insurance (another name for high-risk auto insurance) to provide financial protection for these drivers.

We believe your driving history shouldn't define you forever, and we work hard to find quality, affordable coverage for every driver, regardless of their past.

Where can I find the cheapest car insurance rates in Michigan?

Car insurance costs vary depending on a number of factors, including:

The amount & type of coverage you choose
The year, make, and model of the vehicle you drive
How much you drive, where you drive, and where you live
Your demographics
Your driving record
Your insurance score

Other Michigan Auto Insurance Resources

Find Cheap Car Insurance in Michigan with Direct Auto!

Call, click, or come in to get a Michigan car insurance quote from Direct Auto! We always offer affordable coverage options, and we work hard to get you cheap car insurance in Michigan so you can keep driving to new adventures.

*Emergency Protection Plans (EPP) and Roadside Assistance are not insurance and are administered through Nation Safe Drivers, Boca Raton, FL. Not all benefits available in all states.

** The “Direct Auto Insurance” brand is used by insurers in the National General Group, Winston-Salem, NC to describe their direct-to-consumer auto insurance programs. Direct Auto Insurance branded policies are produced by Direct General Insurance Agency, Inc. dba “Direct Auto Insurance” and by National General Insurance Marketing Inc

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